volvo penta stern drive dp-e

If the gearshift moves normally then it sounds like a broken cable or linkage. If the gearshift is stuck in reverse then I suspect the cone is jammed in the top section of the drive, you will need it on land to check it.
 
What is not clear from your message, is can you get neutral and reverse or is it just reverse permanently you have? If you can move the gearbox from reverse to neutral, then back to reverse, the cable is probably ok. It might simply be adjustment, if that's the case.

Gear selection on this drive, is by means of a cable which pulls or pushes a pivot. The pivot is connected to a rod, which then translates the push-pull of the cable to either move the rod up or down. The other end of the rod, is connected to the selector shoe. The movement of the cable therefore translates onto a clockwise or anti-clockwise rotation of this shoe.
The mechanism inside the gearbox is of a sliding gear. everything inside the gearbox is heavily built and unlikely to be a problem if you have at least one gear albeit reverse...
The shoe to rod connections are made via small split pins. These can break down if the wrong ones are fitted, or can corrode due to electrolysis even if they are 316 stainless. If the rod has no split pins in, it can come loose from the one end, causing it to stay where it was when it last worked. The rod is quite thick, so unlikely to snap.
All of this lot can be in the seawater, so theres no great shakes if you remove the screws holding the housing on, just to take a murky look as what's going on. Providing the cable is intact, my money is on the problem being fairly obvious, once you have the cover off, but try not to drop the cover or any other bits into the oggin when you take the lid off! (If it's in the water, don't remove the shoe. You'll fill your gearbox up with seawater and boogar it up).
Hope that helps.
 
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